Summary of expected insurance supervision changes by IAIS and impacts on insurers.
In 2015, the International Association of Insurance Supervisors (IAIS) continued to work towards insurance industry regulatory reform relating to Internationally Active Insurance Groups (IAIGs) and Global Systemically Important Insurers (G-SIIs). Significant themes of the IAIS Framework include group-wide insurance supervision and consistency of regulatory frameworks across geographical jurisdictions.
With the Financial Stability Board (FSB) continuing to influence the IAIS work program, and two important consultations released in November 2015, it is clear that 2016 will be another pivotal year. These initiatives may have an impact on insurers, especially in relation to:
The IAIS Framework is a globally accepted framework for supervision of the insurance sector. It is structured in a series of increasing requirements depending on the nature of the entity being supervised:
The hierarchy of application of the requirements for insurers/insurance groups can be demonstrated in the chart below.